With BTC dropping fast over the last two weeks or so, investors are losing the belief that the last bullish move was the one which will bring us to $50k and beyond. Main reason for the current drop is the renewed fear of rising interest rates because inflation is seemingly unstoppable at this point.

If we see more downside, the pattern of the last two months has just been a bear-flag in the middle of a further drop. However, BTC has to fall through the yellow area of reversal first. This area is the most likely area to cause a bounce, so keep an eye on it.

If all supports fail, I wouldn’t be surprised if we fall all the way back to $30k. If stocks will make a new low soon, $30k is definitely in the cards as far as I’m concerned.

In short, watch the yellow area for a bounce. In case of no bounce, next bounce opportunity is $30k.

Happy trading!